Local Rule Civil Rule 83.8: Non-Appropriated Funds Plan for Administration of the Court Library Fund and Pro Bono Fund

Civil Rule 83.8 Non-Appropriated Funds Plan for Administration of the Court Library Fund and Pro Bono Fund Pursuant to the "Guidelines for Non-Appropriated Funds Maintained by the Courts of the United States" issued by the Director of the Administrative Office of the United States Courts on October 1, 1981, the United States District Court for the Southern District of California has adopted the following plan for the administration and operation of the funds derived from attorney admission fees. These funds will be held by the Court in appropriate depositories, separate from other monies received by the Court. They will be expended at the direction of the Chief Judge, or in accordance with guidelines set forth in Section A of this plan, below, and in subsequent orders of the Court. Unreasonable accumulations to both funds must be avoided. a. Guidelines for Use 1. Library Fund. Consistent with Judicial Conference Guidelines, the fund must be used for purposes approved by the District Court judges for expenses that inure to the benefit of members of the bench and the bar of the Court, including, but not limited to the following: a) Expenses of the Court Library for which appropriated funds are not available at the time the expense is incurred (such as payment for publications and periodicals, filing services, temporary assistance with special projects and the computerization of library catalog); b) Expenses related to attorney admission proceedings; c) Expenses related to attorney discipline enforcement and proceedings; d) Lawyer lounge and other courthouse facilities benefitting the bar; e) Equipment and materials to assist attorneys in the courtroom; f) Expenses for printing court rules, manuals on practice and procedure, a slip opinion index, and other documents related to court operations given to attorneys upon admission to the bar; g) Attorney expenses for court committee meetings; h) Expenses in connection with court memorial and commendation services; i) Court projects and programs that interest or benefit the bar or which enhance the quality of advocacy in the Court; j) Expenses of the collection and preservation of court records; k) Expenses for the development of historical and educational materials describing the Court for use by the bar, including, but not limited to, the Annual Reports; l) Costs of special projects or acquisitions to further the administration of justice in the courts; m) If appropriated funds are not available, training and professional dues for Court Library personnel designed to enhance the administration of justice and to benefit the bar; n) Fees for services rendered by outside auditors in auditing the fund, in accordance with Section d. below; o) Costs of the annual Southern District of California Conference, and costs associated with the Court's participation in the Ninth Circuit Judicial Conference. 2. Pro Bono Fund a) The Pro Bono Fund must be used for reimbursement of out-of-pocket expenses, necessarily incurred by court-appointed attorneys representing indigents pro bono in civil cases not covered by the Criminal Justice Act, provided that approval for such expenses is first obtained from the magistrate judge assigned the case, or if for any reason the magistrate judge is unavailable, or if the total expenses in the case exceed $1,000.00, the district judge assigned the case. In the event of a showing of extraordinary circumstances, the requirement of prior approval may be waived by the magistrate judge or the district judge. Further, funds may be used to help defray or reimburse administrative costs in screening applicants referred by the Court. Application for such funds must be approved by the Court. Additionally, the funds may be used for purposes which enhance the purpose and goal of creating, supporting, and maintaining a group of volunteer lawyers who will assist the Court in representing indigents pro bono in civil cases. Application for such funds must be approved by the Court. The total funds approved for reimbursement of necessarily incurred out-of-pocket expenses under this section may not exceed $15,000.00 in any single case. In the event the party represented recovers costs, the out-of-pocket expenses allowed under this section must be redeposited into the fund. b) The funds must not be used to pay for materials or supplies available from statutory appropriations nor to supplement the salary of any court officer or employee. c) The funds may be used as a revolving account to pay for expenses for which the Fund will be entirely reimbursed. b. Custodian of the Fund 1. The Clerk will act as custodian of the funds and will be responsible for receiving payment of attorney admission fees and for safeguarding, depositing, disbursing and accounting for all assets of the funds. Monies paid into the funds must be kept separate and distinct from any other monies received by the Court. In particular, the custodian must: a) Make payments from the funds for purposes authorized in accordance with Section a; b) Establish an appropriate accounting system for the funds and maintain proper records of receipts and disbursements; c) Prepare and submit to the Court a quarterly report on funds activities, setting forth the balance, receipts, disbursements in accordance with the fiscal plan; d) Invest funds in accordance with the guidelines set forth in Section C, below, and; e) Perform such other duties as the Court may direct. 2. Upon appointment by the Court of a successor custodian, the outgoing custodian must prepare and sign the following statements in conjunction with the exit audit or inspection conducted by an auditor or disinterested inspector as designated by the Court; a) A statement of assets and liabilities; b) A statement of operations or of receipts and disbursements since the end of the period covered by the last statement of operations and net worth; and c) A statement of the balance in any Fund accounts as of the date of transfer to the successor custodian. The successor custodian must execute a receipt for all funds after being satisfied as to the accuracy of the statements and records provided by the outgoing custodian. Acceptance may be conditioned upon audit and verification when the circumstances warrant. c. Management of Fund. The District Court judges will act as the advisory committee supervising the fund. Duties specified below as those of the Clerk and Chief Judge apply also to the Clerk's designee or acting chief. 1. Library Fund. The judges delegate to the Clerk authority to authorize expenditures totaling $500 per month. If any expenditures exceed that amount, the Clerk will refer the request to the Chief Judge who will have the authority to approve individual expenditures not exceeding $2,500. A Library Fund Committee, consisting of the current Chief Judge, the immediate former Chief Judge, and the next Chief Judge, will have the authority to approve individual expenditures not exceeding $5,000. In the absence of the immediate former Chief Judge, the current Chief Judge will designate another district judge to the Library Fund Committee. Approval by a majority of the district judges is needed to authorize individual expenditures in excess of $5,000. For any check in excess of $500, the signature of the Chief Judge as well as the Clerk is required. 2. Pro Bono Fund. Disbursements from the pro bono fund must be made according to the provisions of Section a. 2. Approval by the District Court judges is needed to authorize general expenditures not related to a specific case in excess of $500 per month. Furthermore, for any check in excess of $500, the signature of the Chief Judge as well as the Clerk is required. 3. Report. The Clerk of Court will distribute the quarterly report required in Section b.1.C to the Chief Judge who will distribute it to the District Court judges for review. Further, any other reports, such as those required in Section b.2 or Section d will be distributed by the Chief Judge to all District Court judges for review. d. Audits and Inspections. Funds are subject to audit by the Administrative Office of the United States Courts. The Court may appoint an outside auditor or disinterested inspector (who may be a government employee) to conduct such additional audits as the Court determines may be necessary or appropriate. The written results of each such audit or inspection must be provided to the Court. Reasonable compensation may be provided from fund assets if the auditor or inspector is not a government employee acting in an official capacity. A terminal audit or inspection must be performed prior to the dissolution of the funds and a written accounting rendered to the Court. e. Protection of the Fund. All receipts must be deposited only in federally insured banks or savings institutions and whenever practical and feasible, all substantial sums must be placed in interest bearing accounts or certificates of deposit that are insured by the FDIC, in government securities, or in money market funds invested in government obligations, at the direction of the Court. Efforts must be made to maximize the return on investments consistent with requirements of convenience and safety. f. Dissolution of the Fund. The Court may dissolve the funds or any portion of those funds whenever considered appropriate. Care must be taken to ensure that all outstanding obligations are liquidated prior to dissolution of the funds, including any expense resulting from the required terminal audit or inspection. In addition, efforts must be made to dispose of the assets of the funds in ways which fulfill the purposes of the funds, as set forth in Section a.1 and 2, above.